C

Convenience Account

An account where the owner adds another person to his or her account solely for the purpose of signing privileges-no survivorship rights are assumed.

Conventional Loan

A mortgage loan that is not insured or guaranteed by a government agency such as the FHA (Federal Housing Administration), the VA (Veterans Administration), or the Rural Development Services (formerly known as Farmers Home Administration, or FmHA).

Cost of Living

The average cost of the basic necessities of life, such as food, shelter, and clothing; some locations, like New York and Los Angeles, have relatively high costs of living compared to the average. ┬á It is important to take the Cost of Living into account when considering job pay in various locations.

Cost of Living Index

An inflationary indicator that measures the change in the cost of a fixed basket of products and services, including housing, electricity, food, and transportation. A rise in the cost of living reflects the rate of inflation. The cost-of-living index is published monthly. Also called Consumer Price Index (CPI).

Cost/benefit analysis

Tool used to choose among alternatives involves weighing the cost of a product or service against the benefit it will provide.

Coverdell Education Savings Account

A deposit or investment account that provides tax benefits to help accumulate funds for education.

Credit

An amount of money a bank or credit card issuer lends to you. You can charge/spend any amount from your credit line to make purchases or take cash advances. As long as you pay the minimum amount due each month by the due date, you can continue to use your remaining available credit.

Credit Bureau

A credit bureau keeps a record of your credit history for any card or loan issuer to review when considering your application for credit. The three major credit reporting agencies in the United States are Equifax, Experian (formerly TRW) and Trans Union.

Credit Card

A credit card allows you to make partial payments for purchases, but charges interest on the amount owed. You can pay your balance off in full to avoid interest payments. Banks and other card issuers set interest rates and fees.

Credit Card Bill of Rights

An amendment to the Truth in Lending Act to establish fair and transparent practices relating to the extension of credit under an open end consumer credit plan.